Last Updated: 07 Nov 2024
Executive Summary
Unilever PLC ADR (UL) is a global consumer goods company with a strong track record of growth and profitability. The company has a diverse portfolio of brands across a range of categories, including food, home care, personal care, and beauty. UL's products are sold in over 190 countries and territories, and the company has a strong presence in emerging markets.
The company's financial performance has been solid in recent years, with revenue and earnings growing steadily. UL's profit margins are also healthy, and the company has a strong cash flow position. The company's stock price has performed well in recent years, and it currently trades at a premium to its peers.
Company Overview
Unilever PLC is a British multinational consumer goods company headquartered in London, United Kingdom. The company was founded in 1930 through the merger of Margarine Unie and Lever Brothers. Unilever is one of the world's largest consumer goods companies, with a portfolio of over 400 brands, including Dove, Ben & Jerry's, Lipton, and Knorr. The company's products are sold in over 190 countries and territories, and it has a strong presence in emerging markets.
Unilever's business is divided into four segments: Beauty & Personal Care, Food & Refreshment, Home Care, and Nutrition. The Beauty & Personal Care segment is the largest, accounting for over 40% of the company's revenue. The Food & Refreshment segment is the second largest, accounting for over 30% of revenue. The Home Care segment accounts for about 20% of revenue, and the Nutrition segment accounts for about 10% of revenue.
Fundamental Analysis
Unilever's financial performance has been solid in recent years, with revenue and earnings growing steadily. The company's revenue grew by 2.3% in 2023, to €58.4 billion. The company's net income grew by 4.2% in 2023, to €10.1 billion.
Unilever's profit margins are also healthy. The company's gross profit margin was 41.2% in 2023, and its operating profit margin was 19.7%. The company's net profit margin was 17.3% in 2023.
Unilever has a strong cash flow position. The company's free cash flow was €6.2 billion in 2023. The company's cash and cash equivalents totaled €11.4 billion at the end of 2023.
Technical Analysis
Unilever's stock price has performed well in recent years. The stock price has risen by over 50% in the past five years. The stock price is currently trading at $59.27, which is above its 50-day moving average of $63.73 and its 200-day moving average of $55.82.
The stock's relative strength index (RSI) is currently at 62.27, which indicates that the stock is overbought. The stock's moving average convergence divergence (MACD) is currently at -0.75, which indicates that the stock is in a downtrend.
Short Term Outlook
The short-term outlook for Unilever's stock is mixed. The stock's technical indicators are suggesting that the stock is overbought and in a downtrend. However, the company's fundamentals are strong, and the stock is trading at a premium to its peers.
Long Term Outlook
The long-term outlook for Unilever's stock is positive. The company has a strong track record of growth and profitability, and it has a diverse portfolio of brands across a range of categories. The company's products are sold in over 190 countries and territories, and the company has a strong presence in emerging markets.
Analyst Recommendations
The consensus analyst recommendation for Unilever's stock is a "buy". The average analyst target price for the stock is $76.16, which is 28.4% above the current stock price.
